Know Your Customer (KYC) - Meaning, Requirement, Procedure & Status

Need for KYC (Know Your Customer)

In today’s scenario where all financial transactions are being entered into digitally the need for KYC that too particularly e KYC is widespread. We have listed down some important areas where KYC is required

• Opening of bank accounts
• While applying for loans or credit cards
• Opening your locker
• In mutual fund investment
• To establish a new mobile connection
• To change beneficiary or signatories

Available KYC (Know Your Customer) procedures

Know Your Customer compliance can be done via any of these modes namely.

• Offline Mode
• Online Mode
• Aadhar-based Biometric

KYC through Offline mode

• You can download the KYC application form from CDSL Ventures Limited and fill in your details.
• Then you will have to sign and submit a filled copy of the form to the authorised person with whom you wish to invest in mutual funds
• Photocopies of the ID proof, address proof and your passport size photograph should be attached with the form and submitted.

KYC through Online Mode

• Visit the official website of KRA and create your account
• Fill in your personal details
• Then you will be asked to enter your registered mobile number along with their aadhaar card number
• Then you will receive an OTP on your registered mobile number which will be further used in verification
• Lastly, you need to upload a self-attested e-aadhaar copy.

Aadhar based Biometric

• You can opt for Aadhaar based KYC. For this you can have an authorised person from the agency to visit you and collect your details
• You need to submit your Aadhaar copy to the authorised person
• Then you will be asked to map your finger prints on the scanner and then will be linked to the database
• Your details will be generated by matching the fingerprint to the aadhaar database
• Now your KYC is validated

Role of PAN card in KYC

The primary purpose of KYC is to verify and document each individual’s identity. It is mandatory to possess a PAN card for all the income earning individuals and non-individuals issued by Govt. of India. Its main purpose is to identify and verify the identity of the individuals before they perform any financial transactions. The Permanent Account Number is therefore an important document that is required in KYC processing.

Documents required for KYC compliance

The following documents should be submitted along with Know your customer application form and one passport size photograph

• ID Proof– ID proof can comprise of any one of the following: PAN Card, Driving License, Aadhaar Card, Voter ID, Passport Copy or bank photo passbook.
• Proof of address– You can show one of the following documents as your address proof-Recent electricity bill, Mobile or landline Bill, passport copy, latest bank passbook, voter ID, aadhaar card, driving license, or even your ration card.

Steps for checking KYC status

If you have submitted your KYC documents, you can easily check the KYC status. All you need is to follow the steps mentioned below to track PAN KYC update status:

• First of all, you have to visit the official website of CDSL at
• Now you have to enter either
  1. Your PAN number or
  2. Enter your name, DOB and exempt category
• Enter the valid captcha to proceed
• Click on submit to check the status
• A screen as shown below will open up. In case your KYC has already been verified then, the latest status will be shown as ‘MF- Verified by CVLMF’. If not, then, the status will be shown as ‘Pending’.
• If you want you can also take out the print of checked KYC status.